Co-packaged optics on Ethernet switches will take time
redwood city, california, February 2, 2023 /PRNewswire/ — The Ethernet switch data center market is forecast to grow at a nearly double-digit CAGR, according to a recently published report by Dell’Oro Group, a trusted source on the telecommunications, networking and data center industries. increase. Between 2022 and 2027 $10 billion Cumulative spending over the next five years. Our current market outlook does not include potential additional sales related to co-packaged optics (CPO) as it remains a shifting target of customer interest and technology readiness.
“Although we expect revenue growth to slow in the near term in 2023, we expect data center switch revenue to grow at a high single-digit to double-digit rate each year during our forecast period. Deloro Group: “Most of the growth will be driven by cloud service providers (SPs), which are expected to account for 60% of data center switch revenue by 2027, with 400 Gbps, 800 Gbps and 1600 Gbps It is expected to drive significant adoption of Gbps speeds.
“By 2027, we expect speeds of 400 Gbps and above to account for approximately 70% of data center switch revenue. The proliferation of artificial intelligence workloads will further accelerate this adoption. As speeds increase, pluggable optics reach physical limits that can no longer satisfy thermal and density requirements. Adoption will depend on several factors, including 1) whether CPOs can offer significant cost and power savings compared to pluggables, and 2) customer roadmaps. We do not anticipate mass adoption within the forecast period,” Boujelbene added.
Other Ethernet Switch Highlights – Data Center 5 Years January 2023 Forecast report:
- 800 Gbps is expected to surpass 400 Gbps by 2025. The availability of 800 Gbps optics and 25.6 T chips has driven the adoption of 800 Gbps switch ports. This adoption was initially led by Google, but we expect other Cloud SPs to follow suit.
- SONiC adoption is expected to accelerate over the forecast period, reaching 10-20% penetration in Tier 2/3 cloud SPs and large enterprises by 2027.
The Dell’Oro Group Ethernet Switch – Data Center 5-Year Forecast Report provides a comprehensive overview of market trends and includes tables covering manufacturer revenues, port shipments, and average selling price forecasts for various technologies. I’m here. Fixed managed and unmanaged by port speed. SONiC by customer segment. and co-packaged optics by port speed. We expect the following port speeds: 1/10/25/40/50/100/200/400/800/1600 Gbps, and SerDes speeds. To purchase this report, please email us. [email protected].
Dell’Oro Group is a market research firm specializing in strategic competitive analysis in the telecommunications, security, networking and data center markets. We provide detailed quantitative data and qualitative analysis to facilitate important fact-based business decisions. For more information, please contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
Source: Deloro Group
